How can you increase the perceived value of your products through bundling and unbundling? (2024)

If you have been to Tesco in the UK, you must have noticed that you can either buy things unbundled, usually at a relatively higher price than that of bundled, per unit. There are options such as 3 for the price of 2, but if you go and buy them individually, it is definitely cost you more. From personal experience, I always go for the bundle.

I use bundling with my business services to assist my clients to get the most bang for their buck. My premium offered allows for my client and I to have a continuous conversation and they get help as they come across real time issues and opportunities and get the right now solution to get immediate help while I am working on the agreed services.This also builds a strong and ongoing relationship with your client that can create continued business.

Depending on your goals or needs bundling can be a great way to achieve different outcomes.I was General Manager at a food manufacturing company and one of our biggest problems was that we had low Average Order Values (AOV) from online sales. To increase our AOV, I had our team sell all our snack products in packs of 6. This was a win-win for both us and our customers. We increased our AOV per order and our customers got more product at a lower price per unit.That said, bundling can also be used to move old inventory or help in testing new products.

It’s very simple to market the value in bundles; an abundance or more of a product or service for less cost versus buying the variants. However, ancillary products, services or features should be available. In my opinion, the marketplace will collectively accept and respond to simplicity when consciously or subconsciously making a decision and disposing funds.

The unbundling of my services has allowed for me to offer the services to a new group of clients that may not be able to offer my premium services. Even though it may take longer for them to achieve the overall results it still allows them to move to closer to the goals while utilizing a trusted source.Having services and products as a la carte also allows for the client to increase their revenue in increments so one day they can partner with the premium services or products.This not only a smart idea to grow your business but also your branding.

Depending on the business model or strategy unbundling can be used as a great way to create contrast between each individual product or "step" in your value chain. For example, you can "unbundle" a group of products and then "bundle" them again to highlight the value of getting the entire bundle.

There are two angles to approach bundling and unbundling: top-down and bottom-up.Top Down: ask company leadership about the options to break up and recombine products in new ways. Bottom Up: get in the customer's shoes! For example, a lower price bundle can improve retention.

In my experience, we took the following steps to identify our bundling/unbundling strategy.We analyzed the business for the best/worst in the following categories1. Customers - AOV, frequency, retention2. Products - purchased, margin, ease of productionAfter this exercise it was very easy to see what product lines we should retain, cut, and push.

I completely agree with the LinkedIn explanation for bundling and unbundling in business analysis. “Know your market” from any aspect or angle possible. The analysis drills into the data in various aspects that can be insightful for growth in a possible niche/vertical if beneficial. There is always new human behavior and tendencies, it’s ever-changing. Artificial Intelligence has continually proven theories and the current technology. In my opinion, regarding visual analysis within the AI sector, it could become a more useful tool than the hard data itself.

Reaching new segments like Gen Z is vital to a company's long-term health. Offering a bundle priced for Gen Z incomes (median annual income for Gen Z in the US: $37,300) opens the door to engaging this generation and earning the option to sell more to them over time.

Again, bundling/unbundling is a tool in the strategy toolbox.One way to use unbundling is to increase retention rates of customers. For example, if your business sells a bundle of services to a customer and they don't purchase again from your company because all their problems have been solved then you may consider unbundling a portion of the services to extend the retention of the customer when they hit the next hurdle in their customer journey.

It’s relative to the organization…as the customer evolves or regresses, strategy should be in place to absorb growth or shift…In the environment the global economy is in, strategy should be in place for growth and atrophy. Simple. However, the minute details are always in tow.

One of the ways that I have been able to help with the bundling and unbundling challenges is to offer different services on different platforms to keep up the message consistent.Knowing where your avatars are on social media or even networking events will allow you to craft the right message for your client.

Like any business decision, bundling/unbundling needs to balance the value delivered to the customer and value delivered to the business.Building integrity and reputation are more important than getting a quick sale. In my experience, the way to achieve this balance requires you to understand WHO your customer is and WHO you are as a business (products, services, ops, etc.)

Lenovo is a great example for bundling and unbundling. I like to purchase their onsite technician repair service - it gives me peace of mind and keeps my laptop running smoothly. Lenovo lets buyers create their own bundles for service - a great DIY approach to bundle creation!

How has the perception and use of artificial intelligence affected the “playing field” consisting of who’s currently leading and who has clever, impactful leadership skillsets to influence future growth globally?